Microsoft Corporation (NASDAQ: MSFT)
Still down around 21% year-to-date, Microsoft’s PE of 25 still continues to be quite reasonable given its forward EPS growth projections of 15%.
This gives MSFT a PEG ratio of 1.6, which combined with its 4 latest earnings beats gives this stock a good chance at seeing that valuation start to come back up to par with the average S&P 500 IT PE ratio of 35.
Our rating for Microsoft is a Strong Buy with a +19% one year upside, and analysts have rated it a Strong Buy with a +33% estimate.
AppLovin Corporation (NASDAQ: APP)
APP is also down around 22% year-to-date but has a considerably higher PE ratio of 49. Together with it’s EPS forecasts gives AppLovin stock a fairly respectable PEG of 1.4.
They continue to see margin increases and have recently opened up their advertising services to the public which could result in a rapid expansion of their revenue figures. We have APP rated a Buy with a 21% one year projection, and analysts have it rated a Strong Buy with an +18% increase.
Adobe Inc. (NASDAQ: ADBE)
ADBE is down almost 40% year-to-date after an incredible fall from grace from its latest peak in January 2024. That said, a PE of 11 and forward EPS forecasts of 12% offer a 0.9 PEG which is hard to argue with.
They have missed their last 2 earnings calls but their revenue has been continuing to steadily climb, and it’s only a matter of time before they start to focus on expanding their margins and translating more of that revenue growth into its EPS figures.
While it’s too early to tell if it’s going to net gain or lose from AI: Our rating for ADBE is a Strong Buy with a +19% one year upside, and analysts have rated it a Hold with a +30% upside.
Topics: MSFT stock price projection, APP stock rating, ADBE stock forecast
